BOK may cut interest rate to 1.5% in Q2: analysts

The Bank of Korea may push for another rate cut within the second quarter of this year, pulling the key interest rate from the recently fixed 1.75 percent down to 1.5 percent, according to some industry observers.“It only took a month for the BOK and the government to give up on their previous hawkish stance and switch their rate policy,” Shin Dong-jun, a researcher at Hana Daetoo Securities, said Monday.“Considering the persisting calls for effective demand, the key rate will probably fall furt

March 16, 2015

Seoul shares close flat on FOMC outlook

South Korean stocks closed almost flat Monday as investors took a wait-and-see approach on the U.S. Federal Open Market Committee meeting later this week, analysts said. The local currency dropped against the U.S. dollar.  The benchmark Korea Composite Stock Price Index gained 1.54 points, or 0.08 percent, to close at 1,987.33. Trading volume was moderate at 312.96 million shares worth 4.55 trillion won ($4 billion), with losers outpacing gainers 416 to 387.  Analysts said Seoul shares traded in

March 16, 2015

Won hits fresh 20-month low vs dollar, bond rally continues

The South Korean won touched a fresh 20-month low against the U.S. dollar Monday on speculation that the U.S Federal Reserve may provide concrete clues on a much-awaited rate hike.  The local currency closed at 1,131.5 per dollar, down 3.0 won from the previous session's end and the lowest since July 10, 2013 when it ended at 1,135.80 won. The won hit an intra-day low of 1,136.60 won at one point.  The greenback continued its ascent versus its major global counterparts, including the euro and th

March 16, 2015

Korea’s 4-year growth falls short of G20 average

South Korea’s economic growth lagged behind the average of the G20 member countries for four consecutive years, data showed Sunday. Asia’s fourth-largest economy saw its gross domestic product grow by 3.3 percent in 2014, lower than the G20’s 3.4 percent average, the Organization for Economic Cooperation and Development reported in its quarterly national accounts of GDP. South Korea’s GDP growth has come short of the G20 average since 2011, when the growth rate reached 3.7 percent, and stayed at

March 15, 2015

Seoul shares likely to trade higher on BOK rate cut

The South Korean stock market is likely to see a gradual gain next week as investor sentiment improves after the central bank's rate cut, analysts said Saturday. The country's key stock market index KOSPI closed 1.35 percent lower than a week ago at 1,985.79 on Friday. Seoul shares were able to pare some of its earlier losses this week after the Bank of Korea unexpectedly decided to cut the key rate to a record-low of 1.75 percent on Thursday. Analysts said the effect of the BOK's surprise rate

March 14, 2015

Won hits fresh 20-month low vs dollar, bond rally continues following rate cut

The South Korean won hit a fresh 20-month low against the U.S. dollar and state bonds continued to build up gains Friday after the country's central bank unexpectedly slashed its policy rate to an all-time low.The local currency finished at 1,128.50 per dollar, down 2.1 won from the previous session's end and the lowest since July 10, 2013, when it ended at 1,135.80 won.Yields on state bonds continued to rally on speculation that another rate cut may be in the offing.The yield on benchmark three

March 13, 2015

S. Korea aims to catch up with Hong Kong as renminbi hub: official

South Korea aims to catch up with Hong Kong as one of the leading renminbi financial hubs, a senior finance ministry official said Friday.Delivering a keynote speech at the Renminbi Internationalization seminar hosted by Deutsche Bank in Seoul, Vice Finance Minister Joo Hyung-hwan said the country has made considerable strides in the last year to build up the necessary infrastructure to service transaction demands.South Korea began Renminbi Clearing Bank operations on Nov. 6, and its won-yuan di

March 13, 2015

S. Korea's import prices fall in Feb.

South Korea's import prices extended their fall in February from the previous year on tumbling oil prices, central bank data showed Friday.In local currency terms, import prices dropped 17.8 percent on-year last month, slightly slowing from a 19.4 percent on-year fall in January, according to preliminary data from the Bank of Korea. It marks the 30th straight month in which import prices posted a decline.From a month earlier, import prices rose 2.8 percent, shifting from a 7.5 percent monthly fa

March 13, 2015

Insurance companies play tricks to dodge customer complaints

Insurance companies and customers are doomed to everlasting strife ― as the former are bound to shun payments as much as possible and the latter are determined to get them at all costs.Although financial consumers have increasingly been voicing their rights over the past years, it seems that the insurers still have an upper hand.According to recent data compiled by the Korea Finance Consumer Federation, a leading civic group, 24 out of 37 life or indemnity insurance companies offered limited acc

March 12, 2015

Seoul shares end down on big-cap losses

After a choppy session, South Korean stocks finished lower on Thursday due to massive blue-chip selling by foreign and institutional investors despite the central bank's unexpected rate cut, analysts said. The South Korean won rose slightly against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell 10.24 points, or 0.52 percent, to 1,970.59. Trading volume was moderate at 379.5 million shares worth 6.27 trillion won ($5.57 billion), with gainers beating decliners 480 t

March 12, 2015

Currency, bond markets suffer choppy trading on surprise

The South Korean won closed nearly flat against the U.S. dollar Thursday after a choppy session and state bonds erased much of their earlier gains after the country's central bank unexpectedly slashed its policy rate to an all-time low.The local currency closed at 1,126.40 per dollar, down 0.1 won from the previous session, snapping a three-day losing streak. The won dipped to as low as 1,136.40 won at one point immediately after the rate cut, but pared earlier losses as recent declines were exc

March 12, 2015

Rate cut can prop up growth or trigger liquidity trap: observers

The move by the central bank to slash the key rate to a record-low level could buoy economic growth by getting people and companies to spend more or trigger a liquidity trap if money flows to the property market, observers said Thursday.The conflicting predictions come after the Bank of Korea (BOK) unexpectedly lowered its base rate to 1.75 percent after recent economic indicators showed Asia's fourth-largest economy struggling with sluggish domestic consumption and weak exports.Industrial outpu

March 12, 2015

Full text of BOK's statement on monetary policy decision for March

Following is a translation of the full text of the Bank of Korea's statement Thursday on its monetary policy decision for March. The central bank's monetary policy committee voted to slash the base rate to a record low of 1.75 percent. The Monetary Policy Committee of the Bank of Korea decided today to lower the Base Rate by 25 basis points, from 2.00% to 1.75%.Based on currently available information the Committee considers that, although the trend of a solid economic recovery in the US has bee

March 12, 2015

S. Korean card firms' net edges up 5 pct in 2014

Commission income and asset sales boosted net profit for South Korean credit card companies in 2014, the financial watchdog said Thursday.The combined net earnings of eight credit card firms stood at 1.8 trillion won ($1.6 billion) last year, up 5 percent from the previous year, according to the Financial Supervisory Service (FSS).The net increase comes to 2.2 trillion won, up 27.6 percent on-year, when including gains from asset sales.Samsung Card Co., for instance, earned 488.5 billion won fro

March 12, 2015

Korea to support SMEs on overseas construction

South Korea’s Ministry of Strategy and Finance said Wednesday that it would provide further financial support for small and medium enterprises to win overseas infrastructure deals.In a meeting with industry officials in Seoul on Wednesday, Vice Finance Minister Joo Hyung-hwan said the government would establish a system allowing public financial institutions to extend financing and guarantees for SMEs to carry out infrastructure projects abroad.“It will seek to expand policy financing by encoura

March 11, 2015

Seoul shares down 0.2 pct on institution selling

South Korean stocks ended 0.2 percent lower Wednesday as institutions offloaded shares ahead of the so-called quadruple witching, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell 3.94 points to 1,980.83. Trading volume was moderate at 376.7 million shares worth 5.71 trillion won ($5.07 billion), with decliners beating gainers 478 to 333."Quadruple witching" refers to the simultaneous expiration of contracts for stock index futures, stock index options, stock options and

March 11, 2015